A setback for the NPL secondary market: fewer companies, more bureaucracy

A setback for the NPL secondary market: fewer companies, more bureaucracy

A huge setback for the German financial market: The loan market law not only reinforced the waves of bureaucracy, but also suffocated competition in the world of needy loans! Only around twenty brave debt collection agencies have ventured to overcome the hurdle of the new permission procedure. This is a dramatic picture for the future of the market that the Federal Association of German Collection Companies (BDIU) has already anticipated!

The numbers speak a clear language: access to this special market has not been expanded, but closed! Instead of giving new actors the chance, the complex requirements have forced many small companies to their knees. "The number of BDIU member companies that were active on the secondary market for needy loans has more than halved," complains the association manager Dennis Stratmann. "That was a failure with an announcement!"

a law with consequences

The new law should actually promise an opening, but reality looks different! Instead of blooming the market for so-called non-perfecting Loans (NPL), we experience questionable consolidation. The BDIU has already warned the risks associated with such a high bureaucratic hurdle. Above all, smaller debt collection agencies, which are often the driving force on the market, have lost trust and withdraw.

When surveying the BDIU, numerous members said that the bureaucratic requirements make survival more difficult. In the past, about twelve percent of BDIU members were still active in the secondary market; Now it is not even five percent! "The opposite of well is well meant," said Stratmann about the sobering overall balance.

great expectations, great disappointment

The EU had raised great hopes with its "action plan for reducing needy loans". The aim was to significantly improve the functioning of the NPL-Secundewear and to promote the growth of European banks. But the implementation in German law has not shown the hoped -for results. "Now we have more bureaucracy and less market," summarizes Stratmann the criticism of the entire industry.

Very few applications for credit services were approved; Only twenty companies have thrown themselves through in the procedure! While about thirty others have said goodbye to this market, the question remains: Where is the announced opening of the market? The BDIU is now calling for a fundamental cut: relieving bureaucracy to revitalize the secondary market and win new competitors!

The background is alarming: As a result of the European financial and debt crisis, needy loans have become a real risk factor that threatens the stability of the banks. A well -functioning second market should give new impulses and solve many of the existing problems, but the opposite has occurred.

If the market cannot finally breathe again, the entire industry could fall by the wayside. The BDIU and its members are under pressure to drive the restart of the secondary market. Time is pushing!